Unleashing the potential of benefits customization

In the world of employee benefits, one truth prevails: There is no one-size-fits-all solution. Each employer’s needs and desires are as unique as the industries in which they operate, the budget they wield, and the people they serve. The (hopefully) symbiotic bond between an employer and their broker is one key to unlocking the magic of benefits customization and crafting a perfect fit.

In a post-pandemic, pre-ish recession world, some industries struggle to stay afloat, while others flourish with financial abundance. This diversity highlights the necessity for tailored solutions. Technology companies, manufacturers, oil and gas giants, and arguably education and government institutions may be thriving right now, while retailers, restaurants, and hospitality venues struggle; they all demand distinctive approaches.

Geographic dispersion adds another layer of complexity. Employers concentrated in one area demand different strategies than those with employees scattered across multiple states. What works for an organization with hundreds of employees concentrated in one area of the country may not apply to an employer seeking access to various networks and contracts across the country or the world. Benefits leaders have an ever-changing, aways challenging job.

Surprisingly, some employers are willing to leave significant savings untouched, uninterested in cutting costs despite the opportunity. Flush with cash and fearing disruptions, they prefer maintaining their current plans — or at least their current budget. On the other hand, organizations dealing with significant financial pain and/or forward-thinking employers may prioritize historically marginalized groups, embracing social consciousness, disease prevention, and family planning, and pushing the boundaries of benefit offerings.

A myriad of interests converge, from the pursuit of lower out-of-pocket expenses to enhanced provider access and flexible work arrangements. The variables to consider when developing strategy and stack-ranking priorities is wide:

• Are there high-cost claimants?
• Higher or lower than average incomes?
• A younger or aging workforce?
• Is the company owned by a private-equity company motivated by only profit margins?
• Is the actual work physically demanding and hard on the body?
• Is the organization running lean with high burn out/turnover?
• And on and on.

The answers may not change from year to year; they may be cyclical, or dependent on the overall financial climate of the country. All businesses have different priorities.

Looking towards 2024, the landscape remains familiar, but change is (always) on the horizon. Many employers will continue to rely on their trusted brokers to navigate the ever-shifting insurance landscape, with some embracing innovation and cutting-edge solutions in digital health, specialty Rx, cost containment strategies, and mental health, while others hold onto traditional plans with unwavering trust — or simply out of fear or laziness or lack of bandwidth and resources.

In this intricate ecosystem, audience analysis, timing, and pain threshold define the way forward. Each decision must be carefully crafted, personalized, and iterated upon to address the unique circumstances of each employer stakeholder within the employer organization. Thanks to a wealth of data, we now possess the means to refine our approach. Brokers, consultants, employers, and benefits providers are all embracing data-driven insights to achieve substantial savings and improve engagement.

However, despite this newfound sophistication, the underlying principle holds true: there’s no one-size-fits-all. Every entity and every person falls on a spectrum of what drives them. It depends on the intrinsic and extrinsic motivations of the decision makers, the financial position and values of the company, the needs of the members, and the context at hand. Embracing this diversity allows us to leverage the full potential of benefits customization, unlocking the magic that lies within.

Once all the variables are considered and the benefits are in place, the savings generated and improved health outcomes happen when an organization learns how to effectively communicate them, often through omni-channel, year-round, curated education and engagement strategies. Execution and ongoing delivery of benefits is often the difference in both quantitative and qualitative success or failure of benefits programs. It matters.

In conclusion, the future of insurance brokering and consulting is a journey where customization, data-driven insights, and innovation converge. As we evolve, the appreciation of individuality and meaningful use of good data can guide us towards better and more engaging solutions. Embarking on this transformative path, asking the right questions of the right people, data literacy, and provably effective communication strategies lead to achieving untapped potential that lies within the dynamic world of insurance brokerage. It’s the science of the art.